Book-Reviews Fault Lines,in geological terms, are the fractures in the earth’s crust which are a result of a significant displacement of the earth mass – a movement on these lines usually results in massive earthquakes. These fault lines have been summarily been equated with the existence thin fissures and undercurrents in the financial world which have resulted in a tectonic shifts in the way business gets conducted worldwide. Raghuraman G. Rajan is a Professor of Finance with the University Of Chicago Booth School Of Business and had also served as a chief economist at the IMF. In his book "Fault Lines", he brings apt .parisons with the geological lines which caused much upheaval in the financial status of America and why the world gets affected by it. These are the Financial or Economic Fault Lines which caused the global financial crisis. In fact, Rajan was one of the few economists who had actually warned us about these mild tremors much before the larger financial quake hit all of us. While the world is struggling to .e out of the crisis, blames fall upon few irrational people who caused this meltdown to happen due to the huge risks they undertook leaving a global recession in its wake. Rajan tries to look beyond these few people who supposedly caused the crisis, to those economic policies which were the actual root cause of the problem – and they still persist. He points out that unless those are looked into we continue to sit on a financial volcano which is causing fissures in the global economic crust the shift of which will cause an even massive crisis! The book focuses on the facts that caused the recent predicament.He basically points out that the crisis was a collective problem caused by a large number of individuals (officials of FIs, governments, politicians, regulators, and even ordinary citizens) who in their own manner were acting as per the flawed economic policies laid out. He mentions that the risk that these policies posed, were not aligned to the benefits one used to draw out of them. He goes deeper into the system to visit those fissures that threaten the economics of the world business order which is heavily dependent on the financial stability of the US. The American wage structure took a beating and saw the wages getting stagnated between 2002 -2005. These led to making housing credits available easily for the citizens, raising the purchasing power parity and expectations while deepening the Fault Lines in an already fissured economic status – stagnant wages, lesser jobs, inequality in education and health policies etc.Fault Lines points at the deepening pressure on the US to bring the house in order. There are serious inequalities in education, health care, home owning laws – all of which give access to cheap and easy credits – and these policies (touching upon Fannie and Freddie Mae) need to be revisited to ensure more stability in the world economy. The ever widening gap between the rich and poor will continue to put pressure on the government to push easy credit into the market.Rajan tries to expose this system which does not offer a blanket social safety . over one and all; however, difficult decisions need to be taken to look beyond the short term incentives the policies have to offer.Change policies to make the economy robust and stable for a longer period of time. In all Fault Lines is a serious and essentially thoughtful book. About the Author: 相关的主题文章：